Unlocking Hidden Home Equity: Why Florida Homeowners Are Sitting on a Goldmine
Homes.com Chief Economist Brad Case analyzes why U.S. homeowners are tapping home equity lines of credit (HELOCs) more steadily since 2022, yet using less than half of their available credit—over $100 billion in balances by late 2025—indicating prudent financial choices amid higher variable rates.[homes]
Conservative Equity Use
HELOC balances rose for over a dozen quarters through 2025, but total credit limits grew faster, leaving most equity untapped as a "safety valve" for needs like medical bills or tuition rather than routine spending. Unlike the mid-2000s borrowing frenzy, today's homeowners prioritize flexibility over debt, bolstered by rising home values that expand limits without aggressive draws.[homes]
Florida Homeowner Examples
In Jacksonville, where recent equity dips averaged $37K year-over-year due to moderating prices, a homeowner could draw selectively from a HELOC for renovations—like updating a kitchen to boost resale value—without risking over-leverage in our 6%+ mortgage environment. This approach preserved optional liquidity for families facing unexpected costs, such as college tuition, while keeping balance sheets strong amid limited refinancing options.cotality+1
Market Implications
Higher rates encourage selective borrowing, signaling homeowner discipline that supports spending stability even if jobs soften—good news for Florida's market normalization. As your local Florida Realtor, I help clients leverage this equity wisely for upgrades or downsizing.[homes]
Read the full analysis here: Homes.com Chief Economist on Homeowner Equity. Contact me to assess your Jacksonville property's equity potential![homes]
